Under Armour cut its guidance because Sports Authority is going out of business

In a statement Tuesday, the activewear retailer said it sees
2016 net revenues at $4.925 billion, down from $5 billion
earlier, and lower than analysts' estimate for $5.02 billion
according to Bloomberg.

When Under Armour first learned in the first quarter that
Sports Authority was going bust, the company didn't think the
debt it was owed would have a material impact.

But it now expects to take an impairment charge of about $23
million related to the bankruptcy in the second quarter. Also, it
only earned $43 million in revenues from the Sports Authority
this year, versus the $163 million it had planned to.

CEO Kevin Plank
said, "While The Sports Authority's
bankruptcy impacts our 2016 outlook, our brand's momentum
is stronger than ever as we continue to see growth and increased
demand across all categories and geographies."